Gov't needs income, so BN senators clear path for SST

BN senators voted to pass the Sales Bill 2018 to prevent further delays in the government’s efforts to implement the sales and services tax (SST), according to a BN senator.  

Speaking during a press conference at the Parliament today, Khairul Azwan Harun said BN senators were aware that the Pakatan Harapan government is in need of income to sustain its administration.

“We know that the country (government) needs the income and so today the (BN) senators have allowed this bill to be passed by the Senate,” he said after the BN-controlled Dewan Negara, through a voice vote, passed one of the five bills related to the return of SST on Sept 1.

Separately, Umno secretary-general Annuar Musa said BN had already recorded its opposition to the government’s move to replace GST with SST, and there was no need to use its majority in the Senate to block the government from delivering one of its election promises.

He said the government had also acknowledged SST’s lack of transparency and inefficiency, yet insisted on going ahead with its implementation.

“We want all promises to be delivered, and let the people themselves judge its outcome.

“SST will not lower prices as Harapan had promised. The people will be taxed, and the ‘black economy’ will take advantage of a weak system.

“In the end, the people will lose out and other taxes would have to be increased,” he added.

Annuar (photo) also echoed Khairul that BN has no desire to add to the government’s financial woes by triggering an impasse in the Senate, which could lead to cash flow problems for the government due to lack of tax revenue.

Khairul further explained that their decision was also made as the Sales Bill – as well as other related monetary bills – could be brought before the Yang Di-Pertuan Agong for a royal assent, without being passed at the Senate level.

"I would like to stress on this point because maybe the rakyat is not aware. With regard to monetary bills, under Article 68 of the Federal Constitution, if the matter is not passed in the Dewan Negara, it could be brought straight to the Yang Di-Pertuan Agong for a royal assent without a need for further debates (in the Dewan Rakyat).

"So in this matter (SST-related bills), we the senators from the opposition are aware of that fact. Even if we opposed it, the government still has a right to pursue the bills and seek the Agong’s assent,” he said when asked to clarify BN’s senators stand to pass the bills, after the opposition lawmakers had voted against it in the Dewan Rakyat.

Khairul also noted that majority of the rakyat had voted for Harapan in GE14, including for its promise to abolish the GST, which has been replaced by the older SST.

"Today is a historical day because Malaysia has lost the best thing that ever happened to us. We are returning to the SST.

"But we respect the voice of the rakyat and the mandate that they have given to Harapan," he said.

Currently, there are 32 BN and three PAS senators out of the 55 in the Dewan Negara.

The four other related bills are the Service Tax Bill 2018, Goods and Services Tax (Repeal) Bill 2018, Customs (Amendment) Bill 2018 and Free Zones (Amendment) Bill 2018.  -Mkini